This paper demonstrates that, even if depositors are fully rational and always choose the Pareto-dominant equilibrium when there are multiple equilibria, a bank run may still occur when depositors' expectations on the bank's fundamentals do not change. More specifically, a bank run may occur...

Free banks in the United States issued private banknotes without discretionary restriction of entry. Previous research suggests explanations for noteholders' relatively large losses and the substantial number of banks that closed. The authors examine these hypotheses and the hypothesis that...

The impact of cross-border bank M&As on bank risk remains an open question. Though geographically diversifying bank M&As have the potential to reduce the risk of bank insolvency, they also have the potential to increase that risk due to the increase in risk-taking incentives by bank managers and...